Which of the Following Statements Is Correct

question 13

Multiple Choice

Which of the following statements is correct?

• A)Managerial decisions are affected primarily by microeconomic forces.
• B)Managerial decisions are affected primarily by macroeconomic forces.
• C)Managerial decisions are affected by both microeconomic and macroeconomic forces.
• D)By and large, managerial decisions are not affected by either microeconomic or macroeconomic forces.

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Definitions:

Federal Government Debt

The total amount of money that the national government has borrowed through various means, including Treasury bonds, bills, and notes.

Default Risk

The risk associated with a borrower failing to make required payments on debt.

Liquidity Risk

The risk that an entity will not be able to meet its financial obligations as they come due because it cannot convert assets to cash quickly.

Deferred Consumption Risk

The risk associated with postponing consumption today in order to invest, with the potential of not having enough resources in the future.